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The bailout and nationalization of GM and Chrysler, masterminded by U.S. Presidents Barack Obama and George W. Bush continues to show signs of success.  (Source: Mandel Ngan / AFP/Getty Images.)

GM and Chrysler each announced plans to hire 1,000 new engineers. GM's one thousand new employees will all work in Michigan, as will most of Chrysler's.  (Source: GM)
Signs of automakers' recovery continue

General Motors Company is now majority owned by public investors, with the government's stake reduced from 61 percent to 26 percent thanks to a $23.1B USD initial public offering of stock.  The government's stake is currently being further reduced by sales of stock to banks and investment firms.  It now looks possible that the taxpayers will be fully repaid their bailout "investment".  And GM has been profitable since the start of the year.

While Chrysler Group LLC is unlikely to fully repay the money the government poured into it during bankruptcy and is still not profitable, it also has a bit of success to report.  It has cut its losses and its sales are currently on the rise.

Both companies announced good news on Tuesday.  GM announced that it would be creating 1,000 new high-tech engineering and research jobs in Michigan over the next two years.  The new hires will work on designing new EVs and hybrids for GM.  

Meanwhile, Chrysler is boosting its work force by 1,000 technical professionals, as well.  Some of its new hires will come overseas, but most will work in Auburn Hills, Michigan at its headquarters and technical center.  Chrysler is recruiting at 35 college campuses and is asking for resumes.  It hopes to have its new hiring complete by April of next year.  The smaller automaker was less specific about the roles of the new hires, though presumably many of them would be designing hybrids and EVs as well.

While Chrysler's plans for EVs have become vaporous of late, GM is prepared to lead America's mass market auto industry into the realm of full electrification.  The company will be delivering its brand-new 2011 Chevy Volt EV to showrooms and customers who pre-ordered within a week or two.

The new EV has garnered substantial attention and won several top automotive publications' "Car of the Year" honors.

The company will begin mass sales of the vehicle next year, with plans to ship 10,000 to 15,000 Volts.  In 2012 it tentatively plans to boost production to 60,000 units.  The company is also hoping to bring a crossover-SUV electric vehicle to market sometime in the next several years.  That vehicle will likely be based on the Chevy Volt MPV5 concept, unveiled earlier this year.

GM has invested $700M USD in Michigan to produce the Volt's battery pack, powertrain, and body, revamping and reopening several production facilities.  In the process it has created a number of manufacturing jobs, aiding Michigan's desperately struggling economy.



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The taxpayers will be repaid?
By 91TTZ on 12/1/10, Rating: 0
RE: The taxpayers will be repaid?
By mellomonk on 12/1/2010 5:21:04 PM , Rating: 4
The IPO went pretty well and with business looking good, the government owned shares are pretty valuable. It seems more and more likely that the government will at least break even, if not profit. The question is how long they will hold on to their shares.

Turn off fox news and pick up a Wall Street Journal or something. The auto industry bailout though distasteful, was absolutely necessary for US industrial and technological prowess. The loss of jobs through the industry and it's suppliers is bad enough. The collapse of either or both Chrysler and GM would be terrible blow to the economy. Sometimes it is necessary to culture and invest in a particular industry when it is for the greater good. The right wing types have no trouble with the concept if it is a defense related company even though even the largest of those has but a fraction of the economic impact of GM, it's dealers, and suppliers. Pure capitalism is as evil and reckless a concept as pure socialism.


RE: The taxpayers will be repaid?
By Nfarce on 12/1/2010 9:30:12 PM , Rating: 1
"Turn off fox news" blah blah "right wing types" blah blah.

Bed wet much there, lefty? When you subvert the bankruptcy laws, steal power from the GM investors to give to your political cronies (UAW) - and give them several unearned seats on the board of directors - you undermine the entire bond markets credibility. Particularly the credibility of the US.

But this is the same administration that finds it perfectly acceptable to just print more US dollars and throw them into the economy as if that won't have any repercussions on anything either. Particularly inflation and the dollar value.


RE: The taxpayers will be repaid?
By mcnabney on 12/1/10, Rating: -1
RE: The taxpayers will be repaid?
By Nfarce on 12/2/2010 11:28:37 AM , Rating: 2
Relatively speaking, deflation is today thanks to the sour economy. I'm referring to inflation tomorrow with currency just being pumped into the economy. You do understand that more money artificially put into the economy causes prices to rise, right?


RE: The taxpayers will be repaid?
By Flunk on 12/2/2010 9:08:43 AM , Rating: 2
"But this is the same administration that finds it perfectly acceptable to just print more US dollars and throw them into the economy"

The last administration did this too, the main problem is the enormous deficit. Without a balanced budget they're going to keep doing this.

The only real solution is to tax more or cut back social services, although at this point I think they would have to cut ALL social services to break even.


RE: The taxpayers will be repaid?
By cruisin3style on 12/2/2010 3:39:16 PM , Rating: 2
Fox News is universally known as biased and the original perpetrator of such "news" except by those who are fans.

Just youtube obama and mccain's interviews with bill o'reilly from the 08 elections

He asks obama "hard-hitting" questions, then asks mccain what he thought about obama's answers to his questions...pathetic


RE: The taxpayers will be repaid?
By Nfarce on 12/2/2010 11:22:00 PM , Rating: 3
Yeah I know. Kinda like MSNBC and CNN and the New York Times asks "hard-hitting" questions - like Jimmy Carter constantly whining about Fox News and wants to shut them down. Not that I get me "news" from them or anything.

Everything is relative...relative to the perspective you are from. I will say this however: O'Reilly has more liberals on his show than Rachel or Keith have on their respective MSNBC commentary shows. And when it comes to Sunday morning broadcast "news" shows like Meet The Press, well, there you have it.


RE: The taxpayers will be repaid?
By FITCamaro on 12/2/2010 8:36:00 AM , Rating: 2
RE: The taxpayers will be repaid?
By Nfarce on 12/2/2010 11:29:16 AM , Rating: 1
Don't give out facts FIT, it just gets people upset around here and they vote you down.


RE: The taxpayers will be repaid?
By Etsp on 12/1/2010 5:22:05 PM , Rating: 2
http://www.dailytech.com/GM+Posts+865M+Profit+Look...

quote:
The company has already paid back all its government loans years ahead of schedule, using some of the bailout money it had from the government's purchase of a 61 percent stock stake.


They paid back the loans.
Yes they used the capital they received from the government buyout to do it.
They are in the process of privatizing the company again. This means buying the shares back from the government. This means the government is getting its money back. I don't know all the details, so it's possible that the government won't get all its money back, but it will be getting most of it.

What the hell are you harping about? I mean, I know its a stretch to ask someone on the internet to fact-check what they post about, even more of a stretch to ask them to not post if they don't know what they're talking about, but if you want to support your position, use facts.

It's to people like you that trolls owe their success to.


RE: The taxpayers will be repaid?
By FITCamaro on 12/2/2010 8:20:54 AM , Rating: 2
I was the biggest GM lover here.

And no they will not pay back all the money. All the money they got before their bankruptcy will not be repaid. Only the money given to them after it is. The rest was written off in the bankruptcy.

And paying off one loan with another is not repaying loans. That's like saying repaying a credit card with another means you're out of debt.

I won't even think about ever buying another GM vehicle until the federal government owns absolutely no stake in the company.

And to another's post, no I would not support the government bailing out any defense company either. The government does not have the power to buy industries.


RE: The taxpayers will be repaid?
By Etsp on 12/2/2010 3:17:04 PM , Rating: 2
quote:
And paying off one loan with another is not repaying loans. That's like saying repaying a credit card with another means you're out of debt.
See gregpet's post below. equity != loan. Equity is not even similar to a loan.


RE: The taxpayers will be repaid?
By Dr of crap on 12/2/2010 8:55:30 AM , Rating: 2
Let me be the first to say - bug off.
They lied when they said that they paid off the loan early, and had egg of thier faces when it was pointed it out.

They hid the fine points about the Volt being a hybrid and not a kind of EV car. Yet they continue to hype the stupid thing.

WHY would we want to belive anything that GM has to say?
They haven't changed from what they used to be - it's still the same company and not a good one!


By BruceLeet on 12/1/2010 5:44:53 PM , Rating: 2
Well you're going to take it either 1 of 2 ways

1. Up the rear with complaints.
2. A civil revolution with action.


RE: The taxpayers will be repaid?
By EglsFly on 12/2/2010 12:03:59 AM , Rating: 4
2000 jobs? Ha, I fart in your general direction...

The billions spent propping up these companies, and GM filed bankruptcy anyways! It would have been cheaper to just give the people money instead of keeping this mismanaged company a float, but that is not what capitalism is about. They should have been left to fend for themselves without taking money out of our wallet.

I as an individual taxpayer am expected to keep my checkbook balanced and not spend myself into unrecoverable debt. These companies and our government should not only do the same, but even better considering they have highly paid and educated individuals responsible for doing just that.


By FITCamaro on 12/2/2010 8:38:13 AM , Rating: 5
Most of the government is liberal arts, journalism, creative writing, etc majors and lawyers. Not mathematicians.

Educated != competent

Ex. Obama


Chrysler recruiting to ship overseas
By Beenthere on 12/1/10, Rating: 0
By mellomonk on 12/2/2010 5:37:22 AM , Rating: 5
That's funny since Chairman Marchionne has been crazily trying to figure out how to shift massive amounts of production work to the US. The Italian union and taxation situation is nuts. By 2015, all Lancia production will likely be moved to the US as that nameplate becomes the face of the Chrysler models in the EU. Jeep and RAM will more then likely be the only US nameplates there. The Jefferson Ave. plant in Detroit will be making a Maserati SUV for export. There are plans to build Fiat models in the Toledo plant as well. US made Phoenix V-6 and several transmissions be available across many Fiat models. In fact the only EU made future Chrysler models at this point will be a new small jeep and Dodge based on the C-EVO platform that will be built in Italy. The next Viper could possibly be built in conjunction with Ferrari as well.

Compared to the merger with Daimler, which absolutely gutted every aspect of Chrysler and then the exploitation and bankruptcy under Cerberus, the partnership with Fiat is going fantastic at this point.


RE: Chrysler recruiting to ship overseas
By Flunk on 12/2/10, Rating: 0
RE: Chrysler recruiting to ship overseas
By Dean364 on 12/2/10, Rating: 0
By Samus on 12/3/2010 1:24:26 AM , Rating: 2
It's funny how everybody on DT is an economist.


Shares bought by banks
By chmilz on 12/1/10, Rating: -1
RE: Shares bought by banks
By danobrega on 12/1/2010 4:27:04 PM , Rating: 2
It is like this everywhere. In Europe the same is happening... sad. :'(


RE: Shares bought by banks
By FITCamaro on 12/2/2010 8:23:49 AM , Rating: 2
I am as against the bailouts as anyone, but the bonuses were not the problem. It was compensation legally promised to employees. If payroll is being made, you either have to give out the bonus that was agreed upon in the contract, or you violate that contract and are subject to a lawsuit.

Did I like that they were getting paid bonuses? No. Should contracts be violated? No.


RE: Shares bought by banks
By Flunk on 12/2/2010 9:05:05 AM , Rating: 1
The argument isn't that the bonuses shouldn't have been paid but that they never should have been written in the the contracts in the first place.


RE: Shares bought by banks
By FITCamaro on 12/2/2010 8:19:58 PM , Rating: 2
Thats how many of those employees mainly get paid.

If people don't like what kinds of compensation employees of a company get, don't invest in that company.


Whoa!! The Real Story.
By Reclaimer77 on 12/1/10, Rating: -1
RE: Whoa!! The Real Story.
By acer905 on 12/1/2010 5:12:29 PM , Rating: 2
Ya know... as soon as you get out of Metro Detroit, Michigan is actually quite nice. (excluding Flint...)


RE: Whoa!! The Real Story.
By YashBudini on 12/1/2010 10:10:01 PM , Rating: 2
If he couldn't make gross generalizations he'd have nothing to say. Pinpoint accuracy apparently is beyond hick mentality. There's no fun in it.


RE: Whoa!! The Real Story.
By Anoxanmore on 12/2/2010 8:15:40 AM , Rating: 2
Whoa there. Are you telling me there are more than two towns in Michigan?

Blasphemy!


RE: Whoa!! The Real Story.
By iwanttobehef on 12/1/2010 6:01:38 PM , Rating: 2
I am not sure the man from the land of foreclosures and New York seniors should be feeling so high and mighty. Yeah You live in florida


RE: Whoa!! The Real Story.
By FITCamaro on 12/2/2010 8:29:53 AM , Rating: 2
Florida is still a far better place to live than Michigan.

And a far better potential job market. I'm betting the only reason all those jobs are going to be in Michigan is because the administration deemed it so. I feel sorry for those fools who have to move there. I wouldn't want to live in a cold state and a city full of abandoned buildings and high crime.


RE: Whoa!! The Real Story.
By iwanttobehef on 12/2/2010 9:38:30 AM , Rating: 2
and thats why you picked low wage, high unemployment backward ass South Carolina. Because you belong there.


RE: Whoa!! The Real Story.
By FITCamaro on 12/2/2010 8:27:55 PM , Rating: 2
Hence why people like me in South Carolina want to eliminate the income tax here in South Carolina. So it will become a better job market. We already got Boeing here. There's also a BMW plant here.

Much of the unemployment here is a result of idiots like Clyburn who love that most of the blacks in this state are poor. He promises the money will keep flowing to them if they keep voting for him. Why would they try to go make something better of themselves?

And what the fuck do you do? In January I'm starting a side gig that pays $55-60/hr. Yeah I'm just a dumb, ignorant redneck because I live in South Carolina. So according to you I should take the $120-140,000 a year job a guy has been offering me for two years in high cost of living, extremely high unemployment, broke, overrun, and corrupt Commifornia? No thanks.


RE: Whoa!! The Real Story.
By room200 on 12/3/2010 12:08:37 AM , Rating: 2
Shut the fuck up you hillbilly-assed hick.


RE: Whoa!! The Real Story.
By FITCamaro on 12/3/2010 11:50:43 AM , Rating: 2
I love internet tough guys.


RE: Whoa!! The Real Story.
By YashBudini on 12/3/2010 7:59:55 PM , Rating: 2
As much as you love blacks?


RE: Whoa!! The Real Story.
By Gungel on 12/2/2010 9:40:16 AM , Rating: 2
Michigan is not just Detroit. It's probably one of the most scenic states east of the Rockies.


RE: Whoa!! The Real Story.
By Dr of crap on 12/2/2010 10:10:39 AM , Rating: 2
Up here is God's country - where it gets very cold ( -30°F in the winter) we don't want your kind.

You have to have balls to live through the cold.

And the summers are greeaaatt!!


RE: Whoa!! The Real Story.
By Chaser on 12/2/2010 7:56:24 PM , Rating: 2
quote:
And the summers are greeaaatt!!
Yeah all three weeks of it.


RE: Whoa!! The Real Story.
By FITCamaro on 12/2/2010 8:29:44 PM , Rating: 2
I love the cold by the way. I'm just smart enough to live somewhere I can drive a sports car on summer tires year round. Granted right now they're a bit stiff since its getting a bit chilly. Ideal weather to me is 60s.


RE: Whoa!! The Real Story.
By Topweasel on 12/2/2010 12:13:45 PM , Rating: 2
Wow. That is some really offensive work there. I am sure your state/country doesn't a single struggling city. Even with Detroit the suburbs are fantastic, Novi, Rochester Hills, Royal Oak, Birmingham. Ann Arbor is great. Farther away you have Lansing or Jackson. There Kalamazoo, Saginaw, Traverse City, Muskegon, Mackinaw. The list goes on.

Everything in your post is pretty much ignorant.


RE: Whoa!! The Real Story.
By YashBudini on 12/2/2010 12:42:19 PM , Rating: 2
quote:
Everything in your post is pretty much ignorant.

Well now you gave him something to be proud of.


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